The listed parent firm of telco challenger Dito Telecommunity is set for an P8-billion share sale next week after the offer was priced at a discount.
Dito CME Holdings Corp. announced the offer price at P4.88 per share—the bottom of a range that went as high as P6.88 per share and roughly 11 percent below the company’s closing price on Friday.
Owned by Davao-based tycoon Dennis A. Uy, Dito CME controls 53.7 percent of Dito Telecommunity, which is in the middle of a nationwide network rollout to challenge telco giants PLDT Inc. and Globe Telecom.
Another 40 percent of Dito Telecommunity is held by state-run China Telecom while the rest is owned by Uy’s Chelsea Logistics and Infrastructure Holdings Corp.
Dito CME is rolling out a stock rights offering, which will allow existing investors to increase their investment in a company proportionate to their holdings.
Based on the final ratio, Dito CME shareholders can subscribe to one rights share for every 1.73 common shares held. China Bank Capital Corp. will act as sole underwriter for the deal.
A total of 1.64 billion rights shares will be offered, equivalent to about 11.7 percent of Dito CME’s outstanding capital.The ex-date and record dates were set for Dec. 20 and Dec. 23, while the offer period will run from Dec. 27, 2021 up to Jan. 18, 2022.
The shares will be listed on Jan. 26, 2022.
New businesses
Dito CME is also developing new businesses through online learning platform Luna Academy, customer data analytics provider Unalytics and marketing and media solutions company Acuity Global.
Nevertheless, Dito Telecommunity remains its most recognizable business.
Based on Dito CME’s preliminary prospectus, 80 percent of the proceeds from the rights offering will be used to bankroll the ongoing network rollout of Dito Telecommunity while the rest will be used for general corporate purposes.
The telco is on track to reach five million subscribers this year after making its commercial debut last March 8.
Dito Telecommunity, whose Congressional franchise expires in 2048, is bound to a five-year commitment with the Philippine government that ends in 2024.
During this period, it committed to cover 84 percent of the Philippine population and offer a minimum average internet speed of 55 megabits per second.
The company earlier announced it had reached over 340 cities and municipalities with over 3,300 towers built and 4,000 more sites underway.